Chinese investors will invest €20 million in Kumrovec's Hotel Zagorje, which used to be a political school in the former Yugoslavia, Chinese businesswoman Yu Jiang, co-owner of the Zhongya Nekretnine company, the only company that submitted a bid for that property in a recent tender, said on Friday.

Yu attended a ceremony in Kumrovec, some 60 kilometres northwest of Zagreb, at which State Assets Minister Goran Maric presented municipal head Robert Splajt with a decision whereby the recreational area in the municipality’s Razvor settlement would be transferred to the ownership of Kumrovec municipality.

The Chinese businesswoman answered questions from the press about her plans for investments in the former political school.

She said that according to an initial estimate, around EUR 20 million would be invested in the project.

We are interested in developing some types of tourism and I believe that this area is suitable for congress and health tourism, Yu said, adding that cooperation with the tourism sector on the coast was possible but that the plan was to develop year-round tourism in Kumrovec.

Asked how much the fact that former Yugoslav leader Josip Broz Tito was born in Kumrovec would be used for tourism purposes, Yu briefly said that they respected history and that Tito was a very important part of the region’s history.

We hope to introduce a new style in tourism, increase gross domestic product and help the local community in its development, the Chinese entrepreneur said.

Yu has visited Kumrovec a number of times and said she wants to convert Hotel Zagorje into a real hotel as well as create a memorial park honouring Tito.

Bids for the devastated state-owned Hotel Zagorje, which covers 27,000 square metres, were opened on May 7.

The only bid submitted was that of the Zhongya Nekretnine company, worth HRK 14.09 million.

Maric said that the ministry had accepted the bid and forwarded a proposal to the government to sign an agreement with the bidder.

Currently, the opinions of the relevant ministries are being awaited, Maric said.